Research on Water Utility Revenue Model and Compensation Policy under Uncertain Demand

摘要

With the diversification of both water utility investment and property right structure, it is necessary to establish a scientific compensation mechanism of water conservancy benefit to balance the interests among investors, water users and pertinent sectors which suffer loss. This paper analyzes the compensation policies water management authority imposed on water supply enterprises under uncertain demand, establishes a compensation model with risk preference, explains the implications of risk preference on the decision-making behaviors of water supply enterprises by using numerical analysis method, provides the basis for the water management department to formulate reasonable water resources charge standards and compensation policies. At last, the paper discusses how to implement the water compensation policies according to the characteristics of rural water utilities.